Industry more optimistic about business than last year

Home renovation platform Houzz has reported that designers, architects and building firms are generally more optimistic about the stability of the industry in 2024 than this time last year.

This was the finding of Houzz’s recent state of the industry survey, which was collected from its users between December 2023 and January 2024.

According to Houzz, more than half of its users (52%) expect their profits to increase in 2024, which is an increase of 8% from last year’s figure. Similarly, fewer Houzz users (25%) are expecting a decrease in their profits compared to those polled last year, when three-in-ten expected a profit downturn.

Respondents were also asked about whether they thought several major industry-wide issues would improve or worsen over the next year.

Encouragingly, almost two-thirds (62%) said they expected to see demand for their services increase in 2024, as well as two-in-five who also thought that product availability would continue to get better.

However, respondents did also highlight several challenges that they thought could worsen in 2024. Almost half (47%) anticipated that the national economy would get worse this year, 55% predicted a rise in costs and materials, and seven-in-ten expected the costs of their overheads to increase as well.

To combat this, Houzz also asked participants about their planned strategies for growth in 2024. The most commonly reported strategy (68%) is to try and bring in larger budget products. Similarly, 65% plan to increase their prices and margins, and almost two-in-five (38%) plan to offer new products and services to clients.

Houzz’s staff economist Marine Sargsyan, commented: “Home industry professionals are somewhat more optimistic heading into 2024 than they were at this time last year. They are expecting to turn the tide following a challenging year, where economic conditions, such as inflation and rising costs of labour and materials, resulted in fewer and smaller-scope projects.

With positive signs that inflation is easing somewhat and interest rates are stabilising, pros anticipate an increase in the demand for their services in 2024. Many pros adopted new processes and became more selective with the types of projects they’ll take on, making their businesses more resilient.”

Another recent research study from Houzz found that most homeowners looking to undertake home renovations are also interested in increasing the physical size of their kitchen spaces.

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